You’ve Seen This Before…New Record Low Interest Rates

June 11th, 2012

It’s becoming commonplace to see interest rates hitting record lows and this past week was no different. Freddie Mac’s release indicates that the average 30-year fixed rate mortgage was just 3.67% last week with 0.7 points down from 3.75% the week prior. A year ago at this time the rate was 4.49% which is still a great rate, so it’s amazing that we’ve come down to these levels. Much of this decrease continues to be fueled by some of the turmoil in Greece & Europe that has investors dumping money into the safe haven of bonds. The yield on bonds has a pretty direct relationship on interest rates and therefore we see continued record rates.

However, this trend will reverse and any buyer who wants to buy and can comfortably afford to purchase shouldn’t hesitate. Acting now on a purchase if you’re financing will definitely save not only on monthly costs but also substantially on the amount paid during the life of the loan. If you’re interested now is the time!